Colombo City Holdings PLC, a property management company, announced that it would be selling its investment property at Union Place, subject to shareholder approval and identifying a prospective buyer.
The 105.75 perch land and two buildings at Union place which are leased out are the main cash generators of the company. The property was valued at Rs.1.01 billion in March 2015.
The company’s total assets as at June 30 were Rs.1.15 billion. It had retained earnings of Rs.1.09 billion, stated capital of just Rs.11.14 million and trade payables of Rs.53.40 million.
The company posted a net profit of Rs.8.78 million for the June quarter, up from Rs.719, 407 year-on-year.
Its revenue was Rs.12.06 million, down from Rs.12.86 million yoy, while cost of sales increased to Rs.2.12 million from Rs.1.75 million yoy leading to a gross profit of Rs.9.95 million down from Rs.11.11 million yoy.
The company sold its Galle Road property for Rs.206.23 million in September 2014, and had a disposal gain of Rs.36.45 million.
There were no finance costs compared to Rs.2.23 million yoy, due to the company settling a Rs.99.01 million loan which was taken in the previous financial year.
Administrative expenses fell to Rs.3.57 million from Rs.6.19 million yoy, while selling and distribution expenses fell to zero from Rs. 1.99 million yoy.
Lanka Century Investments PLC is the largest shareholder in Colombo City Holdings with 66.40 percent of the shares, while Capital Trust Holdings (Pvt) Ltd holds 6.42 percent and J. E. Costa owns 2.01 percent. (CW)